Getaround upgrades to OTCQB market in September 2024
- Getaround has upgraded its common stock and public warrants to the OTCQB market from the OTC Pink Market.
- To qualify for the OTCQB, companies must meet strict financial reporting standards and pass various tests set by the SEC.
- This upgrade is expected to enhance investor access and liquidity, although it comes with potential risks and uncertainties.
On September 4, 2024, Getaround announced its upgrade to the OTCQB market, a trading platform in the U.S. operated by the OTC Markets Group. This upgrade signifies a shift from the OTC Pink Market, reflecting the company's commitment to meeting more stringent financial reporting standards set by the Securities and Exchange Commission (SEC). To qualify for the OTCQB, companies must maintain audited financials, pass a minimum bid price test, and undergo annual verification and management certification. The upgrade is expected to enhance Getaround's visibility and credibility in the financial markets. By adhering to the rigorous standards of the OTCQB, the company aims to attract a broader investor base, including institutional investors, which could lead to increased liquidity and greater analyst coverage. This strategic move is part of Getaround's efforts to strengthen its market position and improve investor confidence. However, the company acknowledges potential risks associated with this transition, including the possibility of delisting from the NYSE and the uncertainty of developing a sustainable over-the-counter trading market. These factors could impact relationships with third parties and employees, as well as the company's future listing opportunities on other stock exchanges. Getaround's management remains optimistic about the benefits of this upgrade, emphasizing that it aligns with their long-term growth strategy. The company is committed to transparency and compliance, which are essential for fostering trust among investors and stakeholders in a competitive marketplace.